35163
Rules and Regulations
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 946
[Docket No. FV05–946–1 FR]
Irish Potatoes Grown in Washington;
Increased Assessment Rate
AGENCY: Agricultural Marketing Service,
USDA.
ACTION: Final rule.
SUMMARY: This rule increases the
assessment rate established for the State
of Washington Potato Committee
(Committee) for the 2005–2006 and
subsequent fiscal periods from $0.002 to
$0.0035 per hundredweight of potatoes
handled. The Committee locally
administers the marketing order which
regulates the handling of Irish potatoes
grown in Washington. Authorization to
assess potato handlers enables the
Committee to incur expenses that are
reasonable and necessary to administer
the program. The fiscal period begins
July 1 and ends June 30. The assessment
rate will remain in effect indefinitely
unless modified, suspended, or
terminated.
DATES: Effective Date: June 18, 2005.
FOR FURTHER INFORMATION CONTACT:
Teresa L. Hutchinson, Marketing
Specialist, Northwest Marketing Field
Office, Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1220 SW Third Avenue,
Suite 385, Portland, OR 97204;
Telephone: (503) 326–2724, Fax: (503)
326–7440; or George J. Kelhart,
Technical Advisor, Marketing Order
Administration Branch, Fruit and
Vegetable Programs, AMS, USDA, 1400
Independence Avenue, SW., STOP
0237, Washington, DC 20250–0237;
Telephone: (202) 720–2491, Fax: (202)
720–8938.
VerDate jul<14>2003 14:16 Jun 16, 2005 Jkt 205001
Federal Register
Small businesses may request
information on complying with this
regulation by contacting Jay Guerber,
Marketing Order Administration
Branch, Fruit and Vegetable Programs,
AMS, USDA, 1400 Independence
Avenue, SW., STOP 0237, Washington,
DC 20250–0237; Telephone: (202) 720–
2491, Fax: (202) 720–8938.
SUPPLEMENTARY INFORMATION: This rule
is issued under Marketing Agreement
No. 113 and Marketing Order No. 946,
both as amended (7 CFR part 946),
regulating the handling of Irish potatoes
grown in Washington, hereinafter
referred to as the ‘‘order.’’ The order is
effective under the Agricultural
Marketing Agreement Act of 1937, as
amended (7 U.S.C. 601–674), hereinafter
referred to as the ‘‘Act.’’
The Department of Agriculture
(USDA) is issuing this rule in
conformance with Executive Order
12866.
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. Under the marketing order now
in effect, Washington potato handlers
are subject to assessments. Funds to
administer the order are derived from
such assessments. It is intended that the
assessment rate as issued herein will be
applicable to all assessable potatoes
beginning July 1, 2005, and continue
until amended, suspended, or
terminated. This rule will not preempt
any State or local laws, regulations, or
policies, unless they present an
irreconcilable conflict with this rule.
The Act provides that administrative
proceedings must be exhausted before
parties may file suit in court. Under
section 608c(15)(A) of the Act, any
handler subject to an order may file
with USDA a petition stating that the
order, any provision of the order, or any
obligation imposed in connection with
the order is not in accordance with law
and request a modification of the order
or to be exempted therefrom. Such
handler is afforded the opportunity for
a hearing on the petition. After the
hearing USDA would rule on the
petition. The Act provides that the
district court of the United States in any
district in which the handler is an
inhabitant, or has his or her principal
place of business, has jurisdiction to
review USDA’s ruling on the petition,
provided an action is filed not later than
20 days after the date of the entry of the
ruling.
PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\17JNR1.SGM
Vol. 70, No. 116
Friday, June 17, 2005
This rule increases the assessment
rate established for the Committee for
the 2005–2006 and subsequent fiscal
periods from $0.002 to $0.0035 per
hundredweight of potatoes handled.
The order provides authority for the
Committee, with the approval of USDA,
to formulate an annual budget of
expenses and collect assessments from
handlers to administer the program. The
members of the Committee are
producers and handlers in Washington.
They are familiar with the Committee’s
needs and with the costs for goods and
services in their local area and are thus
in a position to formulate an appropriate
budget and assessment rate. The
assessment rate was formulated and
discussed at a public meeting, thus all
directly affected persons had an
opportunity to participate and provide
input.
For the 1997–98 and subsequent fiscal
periods, the Committee recommended,
and USDA approved, an assessment rate
that would continue in effect from fiscal
period to fiscal period unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
information available to USDA.
The Committee met on February 3,
2005, and unanimously recommended
2005–2006 expenditures of $36,750 and
an assessment rate of $0.0035 per
hundredweight of potatoes. In
comparison, last year’s budgeted
expenditures were $38,500. The
assessment rate of $0.0035 is $0.0015
higher than the rate for the 2004–2005
fiscal period. The Committee
recommended the higher assessment
rate to maintain its monetary reserve at
a satisfactory level.
The major expenditures
recommended by the Committee for the
2005–2006 fiscal period include $18,000
for surveillance inspections, $4,800 for
Washington State Potato Commission
(Commission) expenses, $3,000 for
office supplies, $3,000 for Committee
expense, $1,500 for Committee member
compensation, and $1,500 for the
financial audit. The Committee operates
under an agreement with the
Commission. The Commission provides
the Committee office space and
administrative services. Budgeted
expenses for these items in 2004–2005
were $20,000, $4,800, $3,000, $1,500,
$1,500, and $2,000, respectively.
17JNR1
 35164 Federal Register / Vol. 70, No. 116 / Friday, June 17, 2005 / Rules and Regulations
The assessment rate recommended by
the Committee was derived by
multiplying anticipated shipments of
Washington potatoes by various
assessment rates. Applying the $0.0035
per hundredweight assessment rate to
the Committee’s 10,000,000
hundredweight crop estimate should
provide $35,000 in assessment income.
Thus, income derived from handler
assessments and interest ($800) plus
$950 from the Committee’s monetary
reserve will be adequate to cover the
recommended $36,750 budget for 2005–
2006.
Funds in the reserve were $50,277 as
of January 31, 2005. The Committee
estimates that $17,700 will be deducted
from the reserve to cover budgeted
expenses for 2004–2005. Thus, the
Committee estimates a reserve of
$32,577 on June 30, 2005, which will be
within the maximum permitted by the
order of approximately two fiscal
period’s operational expenses (§ 946.42).
The assessment rate established in
this rule will continue in effect
indefinitely unless modified,
suspended, or terminated by USDA
upon recommendation and information
submitted by the Committee or other
available information.
Although this assessment rate will be
in effect for an indefinite period, the
Committee will continue to meet prior
to or during each fiscal period to
recommend a budget of expenses and
consider recommendations for
modification of the assessment rate. The
dates and times of Committee meetings
are available from the Committee or
USDA. Committee meetings are open to
the public and interested persons may
express their views at these meetings.
USDA will evaluate the Committee
recommendations and other available
information to determine whether
modification of the assessment rate is
needed. Further rulemaking will be
undertaken as necessary. The
Committee’s 2005–2006 budget and
those for subsequent fiscal periods
would be reviewed and, as appropriate,
approved by USDA.
Final Regulatory Flexibility Analysis
Pursuant to requirements set forth in
the Regulatory Flexibility Act (RFA), the
Agricultural Marketing Service (AMS)
has considered the economic impact of
this rule on small entities. Accordingly,
AMS has prepared this final regulatory
flexibility analysis.
The purpose of the RFA is to fit
regulatory actions to the scale of
business subject to such actions in order
that small businesses will not be unduly
or disproportionately burdened.
Marketing orders issued pursuant to the
VerDate jul<14>2003 14:16 Jun 16, 2005 Jkt 205001
Act, and the rules issued thereunder, are
unique in that they are brought about
through group action of essentially
small entities acting on their own
behalf. Thus, both statutes have small
entity orientation and compatibility.
There are approximately 48 handlers
of Washington potatoes subject to
regulation under the order and
approximately 286 producers in the
regulated production area. Small
agricultural service firms are defined by
the Small Business Administration
(SBA) (13 CFR 121.201) as those having
annual receipts of less than $6,000,000,
and small agricultural producers are
defined as those having annual receipts
of less than $750,000.
During the 2003–2004 marketing year,
10,652,495 hundredweight of
Washington potatoes were inspected
under the order and sold into the fresh
market. Based on an estimated average
f.o.b. price of $7.45 per hundredweight,
the Committee estimates that 45
handlers, or about 94 percent, had
annual receipts of less than $6,000,000.
In addition, based on information
provided by the National Agricultural
Statistics Service, the average producer
price for Washington potatoes for the
2003 marketing year was $5.25 per
hundredweight. The average annual
producer revenue for the 286
Washington potato producers is
therefore calculated to be approximately
$195,544. In view of the foregoing, the
majority of the Washington potato
producers and handlers may be
classified as small entities.
This rule increases the assessment
rate established for the Committee and
collected from handlers for the 2005–
2006 and subsequent fiscal periods from
$0.002 to $0.0035 per hundredweight
for potatoes. The Committee
unanimously recommended 2005–2006
expenditures of $36,750 and the $0.0035
per hundredweight assessment rate. The
assessment rate of $0.0035 is $0.0015
higher than the rate for the 2004–2005
fiscal period. With an estimated 2005–
2006 potato crop of 10,000,000
hundredweight, the $0.0035 rate should
provide the Committee with $35,000 in
assessment income which combined
with interest income and funds from the
monetary reserve will be adequate to
cover budgeted expenses. The
Committee recommended the higher
assessment rate to help ensure that its
monetary reserve is maintained at a
satisfactory level. Funds in the reserve
were $50,277 as of January 31, 2005.
The Committee estimates that $17,700
will be deducted from the reserve to
cover budgeted expenses for 2004–2005.
Thus, the Committee estimates a reserve
of $32,577 on June 30, 2005, which will
PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\17JNR1.SGM
be within the maximum permitted by
the order of approximately two fiscal
period’s operational expenses (§ 946.42).
The major expenditures
recommended by the Committee for the
2005–2006 fiscal period include $18,000
for surveillance inspections, $4,800 for
Commission expenses, $3,000 for office
supplies, and $3,000 for Committee
expense, $1,500 for Committee member
compensation, and $1,500 for the
financial audit. The Committee operates
under an agreement with the
Commission. The Commission provides
the Committee office space and
administrative services. Budgeted
expenses for these items in 2004–05
were $20,000, $4,800, $3,000, $1,500,
$1,500, and $2,000, respectively.
The Committee discussed alternatives
to this rule, including alternative
expenditure levels. The Committee
ultimately determined that the
recommended expenses were
reasonable. Lower assessment rates were
considered, but not recommended
because they would not generate the
income necessary to administer the
program with an adequate reserve.
A review of historical information and
preliminary information pertaining to
the upcoming crop year indicates that
the producer price for the 2005–2006
season could range from about $5.25 per
hundredweight to about $5.85 per
hundredweight. Therefore, the
estimated assessment revenue for the
2005–2006 fiscal period as a percentage
of total producer revenue could range
between 0.060 and 0.067 percent.
This action increases the assessment
obligation imposed on handlers. While
assessments impose some additional
costs on handlers, the costs are minimal
and uniform on all handlers. Some of
the additional costs may be passed on
to producers. However, these costs are
offset by the benefits derived by the
operation of the order. In addition, the
Committee’s meeting was widely
publicized throughout the Washington
potato industry and all interested
persons were invited to attend and
participate in the Committee’s
deliberations on all issues. Like all
Committee meetings, the February 3,
2005, meeting was a public meeting and
all entities, both large and small, were
able to express views on this issue.
This rule imposes no additional
reporting or recordkeeping requirements
on either small or large Washington
potato handlers. As with all Federal
marketing order programs, reports and
forms are periodically reviewed to
reduce information requirements and
duplication by industry and public
sector agencies.
17JNR1
 Federal Register / Vol. 70, No. 116 / Friday, June 17, 2005 / Rules and Regulations
USDA has not identified any relevant
Federal rules that duplicate, overlap, or
conflict with this rule.
A proposed rule concerning this
action was published in the Federal
Register on April 1, 2005 (70 FR 16759).
Copies of the proposed rule were also
mailed or sent via facsimile to all
Committee members. Finally, the
proposal was made available through
the Internet by USDA and the Office of
the Federal Register. A 30-day comment
period ending May 2, 2005, was
provided for interested persons to
respond to the proposal. No comments
were received.
A small business guide on complying
with fruit, vegetable, and specialty crop
marketing agreements and orders may
be viewed at: http://www.ama.usda.gov/
fv/moab.html. Any questions about the
compliance guide should be sent to Jay
Guerber at the previously mentioned
address in the FOR FURTHER INFORMATION
CONTACT section.
After consideration of all relevant
material presented, including the
information and recommendation
submitted by the Committee and other
available information, it is hereby found
that this rule, as hereinafter set forth,
will tend to effectuate the declared
policy of the Act.
Pursuant to 5 U.S.C. 553, it is also
found and determined that good cause
exists for not postponing the effective
date of this rule until 30 days after
publication in the Federal Register
because: (1) The 2005–2006 fiscal
period begins on July 1, and the
marketing order requires that the rate of
assessment for each fiscal period apply
to all assessable Washington potatoes
handled during such fiscal period; (2)
the Committee needs to have sufficient
funds to pay for expenses which are
incurred on a continuous basis; and (3)
handlers are aware of this action which
was unanimously recommended by the
Committee at a public meeting and is
similar to other assessment rate actions
issued in past years. Also, a 30-day
comment period was provided for in the
proposed rule and no comments were
received.
List of Subjects in 7 CFR Part 946
Marketing agreements, Potatoes,
Reporting and recordkeeping
requirements.
■ For the reasons set forth in the
preamble, 7 CFR part 946 is amended as
follows:
PART 946—IRISH POTATOES GROWN
IN WASHINGTON
■ 1. The authority citation for 7 CFR part
946 continues to read as follows:
VerDate jul<14>2003 14:16 Jun 16, 2005 Jkt 205001
Authority: 7 U.S.C. 601–674.
■ 2. Section 946.248 is revised to read as
follows:
§ 946.248 Assessment rate.
On and after July 1, 2005, an
assessment rate of $0.0035 per
hundredweight is established for
Washington potatoes.
Dated: June 9, 2005.
Barry L. Carpenter,
Acting Administrator, Agricultural Marketing
Service.
[FR Doc. 05–12005 Filed 6–16–05; 8:45 am]
BILLING CODE 3410–02–P
DEPARTMENT OF AGRICULTURE
Food Safety and Inspection Service
9 CFR Part 381
[Docket No. 04–036F]
RIN 0583–AD13
Termination of Designation of the State
of North Dakota With Respect to the
Inspection of Poultry Products
AGENCY: Food Safety and Inspection
Service, USDA.
ACTION: Final rule.
SUMMARY: The Food Safety and
Inspection Service (FSIS) is amending
the poultry products inspection
regulations by terminating the
designation of the State of North Dakota
under sections 1 through 4, 6 through
10, 11(b), 11(c), and 12 through 22 of the
Poultry Products Inspection Act (PPIA).
FSIS has concluded that North Dakota is
in a position to administer a State
poultry inspection program, which is at
least equal to the Federal poultry
products inspection program.
DATES: Effective on June 17, 2005.
FOR FURTHER INFORMATION CONTACT:
Royce E. Sperry, Deputy Director;
Review Staff; Office of Program
Evaluation, Enforcement and Review,
FSIS, USDA, telephone (402) 221–7401,
extension 7484.
SUPPLEMENTARY INFORMATION:
Background
Section 5(c)(1) of the PPIA (21 U.S.C.
454(c)) authorizes the Secretary of
Agriculture to designate a State as one
in which the provisions of sections 1
through 4, 6 through 10, 11(b), 11(c),
and 12 through 22 of the PPIA will
apply to operations and transactions
wholly within the State if the Secretary
has determined that requirements at
least equal to those imposed under the
Act have not been developed and
effectively enforced by the State.
PO 00000 Frm 00003 Fmt 4700 Sfmt 4700 E:\FR\FM\17JNR1.SGM
35165
The Secretary of Agriculture
designated the State of North Dakota
under paragraph 5(c)(1) of the PPIA,
effective January 2, 1971 (42 FR 2949).
The designation specified that North
Dakota is a State in which the United
States Department of Agriculture is
responsible for providing poultry
products inspection at eligible
establishments and for otherwise
enforcing the applicable provisions of
the PPIA.
In addition, on July 23, 1973, a notice
was published in the Federal Register
(38 FR 19671) announcing that, effective
on that date, the Department would
assume the responsibility of
administering the authorities provided
for under sections 11(b) and (c) (21
U.S.C. 460(b) and (c) of the PPIA
regarding certain categories of
processors of poultry products.
This designation was undertaken by
the Department when USDA determined
that the State of North Dakota was not
in a position to enforce inspection
requirements under State laws for
poultry and poultry products in
intrastate commerce that were at least
equal to the requirements of the PPIA
enforced by the Federal Government.
Section 5(c)(3) of the PPIA provides
that whenever the Secretary of
Agriculture determines that any
designated State has developed and will
enforce State poultry products
inspection requirements that are at least
equal to those imposed by the Federal
Government under the PPIA, with
respect to operations and transactions
within the State, the Secretary will
terminate the designation of the State.
The Secretary has determined that the
State of North Dakota has developed
and will enforce a State poultry
products inspection program in
accordance with the provisions of the
PPIA. FSIS has evaluated the North
Dakota program and determined that it
is at least equal to the Federal
Government requirements. This
evaluation also has shown that the State
of North Dakota is in a position to
enforce effectively the provisions of
section 11(b) and (c) of the PPIA.
Therefore, the designation of the State of
North Dakota under sections 1 through
4, 6 through 10, 11(b), 11(c), and 12
through 22 of the PPIA is terminated.
FSIS published a proposed rule on
March 14, 2005 (70 FR 12420). The
public comment period ended on April
13, 2005. No comments were received.
Executive Order 12866 and Regulatory
Flexibility Act
This proposed rule has been reviewed
under Executive Order 12866. It has
been determined to be not significant,
17JNR1